In the second quarter of the current year, the performance results of Ukraine-headquartered mining and steel producing group Metinvest visibly weakened. Nevertheless, the company’s merchant iron ore and pig iron production increased significantly, supported by solid demand in the global market.
Accordingly, in the second quarter of the current year, Metinvest's total output of pig iron decreased by five percent quarter on quarter to 1.976 million mt. The decline was partially offset by the increase in pig iron production at its Ilyich SW facilities by 53,000 mt quarter on quarter to 1.144 million mt in the given period, while the output of pig iron at Azovstal fell by 167,000 mt quarter on quarter to 832,000 mt in the second quarter.
Following the decrease in pig iron output, in the April-June period this year Metinvest’s crude steel output totaled 1.792 million mt, decreasing by 17 percent quarter on quarter. It is noteworthy that the converter No. 2 at Metinvest’s Ilyich SW remained idled after the completion of maintenance works, which has additionally affected the production results.
In the meantime, the company managed to increase its merchant semi-finished products output on the back of its merchant pig iron production. Accordingly, in the second quarter of current year, Metinvest’s production of merchant semi-finished products amounted to 880,000 mt, increasing by 38 percent quarter on quarter. In particular, the company’s merchant pig iron output more than tripled quarter on quarter, amounting to 397,000 mt in the second quarter. The main support came from the solid demand for pig iron in the global market. However, in the given period the production of slabs fell by nine percent quarter on quarter to 483,000 mt.
In the given period, the group’s production of finished steel declined by 17 percent quarter on quarter to 1.294 million mt. In particular, its flats production fell by 181,000 mt quarter on quarter to 1.105 million mt, following the shutdown of Italian re-rolling mills due to Covid-19 pandemic and, in particular, the decrease in demand for hot rolled coils generally.
In the mining sector, Metinvest’s total iron ore concentrate output fell by one percent compared to the previous quarter to 7.567 million mt. Meanwhile, the group’s output of merchant iron ore products rose by nine percent quarter on quarter to 5.124 million mt. In particular, its merchant concentrate output increased by 29 percent to 4.110 million mt due to a greater proportion of orders for the product, while the output of iron ore pellets fell by 34 percent quarter on quarter to 1.014 million mt in the second quarter.
Metinvest’s coking coal concentrate output in the second quarter rose by 11 percent quarter on quarter to 1.250 million mt, SteelOrbis has learned.